The `getspanel`

package can be downloaded and installed
from CRAN here by simply
using:

The source code of the package is on GitHub and the development version can be installed using:

```
# install.packages("devtools")
devtools::install_github("moritzpschwarz/getspanel", ref = "devel")
```

Once installed we need to load the library:

Currently the package is called **getspanel** to align
with the **gets** package, but it’s main function of course
remains the **isatpanel** function.

The **isatpanel** function implements the empirical
break detection algorithm that is described in a paper
by Felix Pretis and Moritz Schwarz and was applied to a study by
Nico Koch and colleagues on EU Road CO_{2} emissions, which was
published
in Nature Energy in 2022.

**A quick overview over what has changed:**

We can now use the function approach as well as the traditional gets approach. This means that we can specify a model using

`y`

and`mxreg`

as well as`time`

and`id`

as vectors, but we can now also simply supply a`data.frame`

and a`function`

in the form`y ~ x + z + I(x^2)`

to e.g. specify polynomials. This means we will then need an`index`

argument, which specifies theThe

`ar`

argument now worksWe can now use the

`fixest`

package to speed up model estimation with large`i`

(for short panels, the default method is still faster).The package can be activated using the new`engine`

argument.Using the

`fixest`

package also allows us to calculate**clustered standard errors**.We can now be certain that unbalanced panels would work as intended, which was not the case before.

The

`mxbreak`

and`break.method`

arguments have been removed. Instead the function now produces the break matrix itself. This now implements the following saturation methods in a user friendly way:**iis**: Impulse Indicator Saturation**jsis**:**Joint**Step Indicator Saturation (Common Breaks over time)**csis**:**Coefficient**Step Indicator Saturation (Common Coefficient Breaks over time)**fesis**:**Fixed Effect**Step Indicator Saturation (Breaks in the Group Fixed Effect over time)**cfesis**:**Coefficient Fixed Effect**Step Indicator Saturation (Breaks in the coefficient for each individual)

We first load some data of EU CO2 Emissions in the housing sector.

```
data("EUCO2residential")
head(EUCO2residential)
# A tibble: 6 × 9
country year lgdp lhdd lcdd urban av.rate pop agg.directem
<chr> <dbl> <dbl> <dbl> <dbl> <dbl> <dbl> <dbl> <dbl>
1 Austria 1969 25.6 NA NA 65.2 NA NA NA
2 Austria 1970 25.7 NA NA 65.3 NA NA NA
3 Austria 1971 25.8 NA NA 65.3 NA 7500482 NA
4 Austria 1972 25.8 NA NA 65.3 NA 7544201 NA
5 Austria 1973 25.9 NA NA 65.3 NA 7586115 NA
6 Austria 1974 25.9 NA NA 65.3 NA 7599038 NA
# let's subset this a little bit to speed this up
EUCO2residential <- EUCO2residential[EUCO2residential$year > 2000 &
EUCO2residential$country %in% c("Germany", "Austria",
"Belgium", "Italy",
"Sweden", "Denmark"),]
# let's create a log emissions per capita variable
EUCO2residential$lagg.directem_pc <- log(EUCO2residential$agg.directem/EUCO2residential$pop)
# and let's also turn off printing the intermediate output from isatpanel
options(print.searchoutput = FALSE)
```

Let’s look at how we input what we want to model. Each
`isatpanel`

command takes:

- A specification of the source data, the group and time variable and the group-time characteristics. This can be entered into the function in two ways:

In the

**gets**package style i.e. using vectors and matrices to specify`y`

,`mxreg`

,`time`

and`id`

But also in a form that resembles the

`lm`

and`plm`

specification i.e. inputting a`data.frame`

(or`matrix`

or`tibble`

), a`formula`

argument as well as character vectors for`index`

(in the form`c("group_variable_name", "time_variable_name")`

)

- A an argument for the Fixed Effect Specification using
`effect`

.

This already means that the following two commands will give the same result:

Using the new method

```
is_lm <- isatpanel(data = EUCO2residential,
formula = lagg.directem_pc ~ lgdp + I(lgdp^2) + pop,
index = c("country","year"),
effect = "twoways",
fesis = TRUE)
```

Using the traditional method

```
is_gets <- isatpanel(y = EUCO2residential$lagg.directem_pc,
mxreg = EUCO2residential$lgdp,
time = EUCO2residential$year,
id = EUCO2residential$country,
effect = "twoways",
fesis = TRUE)
```

From here onwards, I will use the `lm`

notation.

We can plot these simply using the default plotting methods (rely on
the **ggplot2** package):

This argument works just as in the **gets** package. The
method simply adds a `0`

and `1`

dummy for each
observation.

Simply set `iis = TRUE`

.

Traditional Step Indicator Saturation does not make sense in a panel
setting. Therefore, the **gets** function of
`sis`

is disabled.

It is possible, however, to consider Step Indicator Saturation with
common breaks across individuals. Such indicators would be collinear, if
`effects = c("twoways")`

or `effects = c("time")`

i.e. if Time Fixed Effects are included.

If, however, `effect = "individual"`

then we can use
`jsis = TRUE`

to select over all individual time fixed
effects.

**Note:** This method has only been tested using the
`lm`

implementation (using `data`

,
`formula`

, and `index`

).

This method allows detection of coefficient breaks that are common
across all groups. It is the interaction between `jsis`

and
the relevant coefficient.

To illustrate this, as well as the advantages of using the
`lm`

approach, we include a non-linear term of the lgdp
variable using `I(lgdp^2)`

:

```
csis_example <- isatpanel(data = EUCO2residential,
formula = lagg.directem_pc ~ lgdp + I(lgdp^2) + pop,
index = c("country","year"),
effect = "twoways",
t.pval = 0.05,
csis = TRUE)
```

By default, all coefficients will be interacted and added to the
indicator list - but his can be controlled using the
`csis_var`

, which takes a character vector of column names
i.e. `csis_var = "lgdp"`

.

This is equivalent to supplying a constant to the mxbreak argument in the old method. This essentially breaks the group-specific intercept i.e. the individual fixed effect.